10 Ways to cut your insurance premium
One of the ways you can save money is on your insurance premiums.
Insurance can be expensive, but Jonathan Holden, managing executive for insurance at Innovation Group has found ten ways in which you can save money on your insurance premiums, while remaining covered for all of life’s emergencies and accidents:
1. Decide to pay more at claims stage:
Arranging you insurance so that you pay a higher excess fee in the event of a claim can reduce your monthly premiums.
Holden explains: “By analysing our individual financial commitments, it is possible to identify the amount that we can comfortably carry in the event of a claim.
“An excess kitty can be earmarked for emergencies and, if you are lucky enough not to claim, this sum becomes an annual saving instead of an expense.”
2. Update the market value:
Many assets depreciate over time, which means that your insurance premiums on those items should decrease as well. However, insurance companies do not automatically reduce your premiums.
To ensure that you are not overpaying on your vehicle insurance, contact your insurance company and renegotiate your monthly insurance premiums on an annual basis.
3. Don’t disregard the discount:
Holden highlights that in many cases risk improvements, such as installing an alarm or tracking systems in your house or car can lead to a premium discount, as you have taken greater steps in ensuring the safety of your assets.
However, it is important to make sure that your insurance company is aware of these risk improvements; otherwise you may not see the benefits.
4. Consolidate your policies:
Often by combining say your household and car insurance policies, companies are willing to give you a discount on the bundle. But it is important to look for the best policy to suit all your needs.
“Make sure that the company you pick can accommodate all of your insurance requirements, from vehicles and household contents to special purpose assets,” adds Holden.
5. Be aware of unnecessary policy riders:
This refers to supposedly “free” benefits, but these added benefits can end up costing you more.
Before agreeing to these extra benefits, consider if you really need them or if you don’t already have a policy that covers them.
6. Check for duplicate coverage:
Make sure that you aren’t paying for insurance coverage on assets that are already covered in another policy.
7. Investigate appliance warranties:
Certain failures and breakdown of appliances, are not always covered under household insurance policies.
These can prove costly. Holden states that appliance warranties cover the repair, and in some cases replacement, of items due to mechanical failure.
He adds that you can extend this cover to include power surge and lighting damage, which may not be covered in the original warranty.
8. Consider cheaper premiums rather than a no claim bonus:
“Innovative insurance companies are able to offer different methods of saving. Although a no claim bonus may seem like a windfall – a monthly saving may make better fiscal sense. Use your broker or customer service agent to structure a flexible and versatile policy centred on your needs,” said Holden.
9. Ensure that your insurance matches your assets:
Make sure that you are not paying excessive amounts for your household cover. Holden highlights that being over or underinsured can affect the claims pay-out that you receive.
It is also important to inform your insurance company when you have disposed of an asset, or acquired a new asset that will need to be included in the insurance policy.
10. Ask questions:
It is important that you understand your insurance policies and what is and is not included, so that you are not left without the cover you need in the event of a claim.
“Contact your broker or a customer service line if anything is unclear or confusing,” notes Holden.
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